• Fire insurance offers a safety measure to safeguard your home and your possessions against the risks of fire. It assists you in restoring your property or replacing your items. Nonetheless, fire or property insurance includes its own specific rules that can be complex for many individuals. Here is an overview of what fire insurance covers and what it does not.

What is fire insurance?

• Fire insurance is a kind of home insurance policy designed to compensate for losses resulting from fire. It offers financial security for various assets, including personal property, inventory, and entire structures. Should a fire happen, the policyholder will file a claim, for which the insurer provides compensation based on the policy’s terms and conditions.

What is covered in fire insurance?

• Having grasped the concept of fire insurance, let us discover what is encompassed or protected under fire insurance. Generally, the inclusions in a Fire and Special Perils Plan comprise damage caused by fire, lightning, explosion or implosion, impact damage from vehicles, animals or aircraft, and destruction due to natural events such as storms and floods.

Here is the complete list of inclusions in fire insurance.
• Fire
• Lightning
• Explosion/Implosion
• Subsidence and Landslides
• Missile Testing Operations
• Damage caused by impact from vehicles, animals or aircraft
• Storms, Floods, Tempest
• Aircraft damage
• Riots, Strikes, Terrorism and Malicious Acts

What is not covered by fire insurance?

While a majority of fire insurance is fairly comprehensive, it does have its restrictions. Intentional property damage or damage resulting from acts of war or forest fires are at the forefront of these exclusions. Insurance providers do not accept claims of the following kind made against the policy:
• Damage due to gross negligence or intentional acts
• Forest fire, war, and perils of nuclear war
• Damage caused by fermentation, natural heating, spontaneous combustion, explosion or implosion damage to boilers
• Damage caused by centrifugal forces
• Terrorism
• Loss or theft occurring during peril
• Undeclared precious stones, cheques, documents or currency

Conclusion

Fire insurance is essential for safeguarding against a broad array of incidents. Nevertheless, neglecting to review the inclusions and exclusions in your policy may lead to claim denial. Thoroughly read your policy document and reach out to your insurance agent for further clarification.

Disclaimer
The information provided above is for illustrative purposes only. For additional details, please consult the policy wordings and prospectus before finalizing the sale.